General Awareness · Banking Financial Awareness

Regulatory Thresholds and Caps in India

860 Questions

Regulatory Thresholds and Caps in India refer to the statutory limits imposed on finance, taxation, and corporate governance. It covers sectoral caps, expenditure limits, and penalty thresholds defined by law. These questions are crucial for banking, accounting, and civil services exams.

Financial limitsTax deductionsCorporate regulationsElectoral thresholdsPenalties and fines

Regulatory Thresholds and Caps in India Questions

Multiple choice

How many Finance Commissions have been appointed till 2007?

  1. 10

  2. 15

  3. 8

  4. 13
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Thirteen Finance Commissions had been constituted till 2007. Finance Commissions are appointed every 5 years under Article 280 of the Constitution to recommend centre-state fiscal relations. The 13th Commission was operational in 2007 (for period 2010-15). Earlier commissions include the first (1952) and well-known ones like the 11th (2000-2005) and 12th (2005-2010).

Multiple choice

Directions: Choose the correct option for the given question.

In basic slabs of Income Tax as proposed in Union Budget 2008-09, the upper limit for the slab having 20% tax now becomes

  1. Rs. 3,00,000

  2. Rs. 4,00,000

  3. Rs. 4,50,000

  4. Rs. 5,00,000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Under the new income tax slabs proposed in Union Budget 2008-09, the 20% tax bracket was extended up to Rs. 5,00,000. This was an increase from the previous limit, providing relief to middle-income taxpayers. The restructuring aimed to stimulate consumption and reduce tax burden.

Multiple choice

Directions: Choose the correct option for the given question.

In 2008-09 budget proposals, income tax exemption limit for women has been hiked to

  1. Rs. 1,65,000

  2. Rs. 1,75,000

  3. Rs. 1,80,000

  4. Rs. 1,85,000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The 2008-09 budget proposals raised the income tax exemption limit for women to Rs. 1,80,000. This was part of a broader effort to provide tax relief to women taxpayers and encourage greater workforce participation.

Multiple choice

How much limit of capital investment is preferred for the small industrial policy in India?

  1. 3 lakh

  2. 4 lakh

  3. 5 lakh

  4. 6 lakh
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The small industrial policy in India sets the capital investment limit at Rs. 5 lakh for classification as a small-scale industry. This threshold determines eligibility for various government benefits, subsidies, and support programs. The limit has been revised over time but 5 lakh represents a historical benchmark.

Multiple choice

In the budget for 1992-93 the income tax exemption limit was raised to

  1. Rs. 22,000

  2. Rs. 30,000

  3. Rs. 28,000

  4. Rs. 40,000

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In the 1992-93 Union Budget presented by Finance Minister Manmohan Singh, the income tax exemption limit for individual taxpayers was raised from Rs. 22,000 to Rs. 30,000. This was part of the economic liberalization reforms to provide relief to the middle class and stimulate demand.

Multiple choice

What is the CRR minimum limit for a commercial bank to be deposited with RBI?

  1. 3%

  2. 10%

  3. 5%

  4. 6%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Cash Reserve Ratio (CRR) is the minimum fraction of deposits that banks must maintain with the RBI. The minimum CRR limit for commercial banks in India has been 3%. This is a monetary policy tool used by the central bank to control liquidity and inflation in the economy.

Multiple choice

Which statement is true rgarding the Gold Bond Scheme?

  1. The minimum limit of gold deposit is 500 gms.

  2. No upper limit of gold deposit

  3. No investigation of source of deposited gold

  4. All of these

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Gold Bond Scheme 1999 had all these features: minimum deposit of 500 grams, no upper limit on deposit, and no investigation of the source of gold to encourage people to disclose their gold holdings. Each statement individually describes an actual feature of the scheme.

Multiple choice

Abhedya company had applied for a small bank. Similarly, Navodaya company had applied for a payment bank. Which of the following conditions is not true with reference to a small bank and a payment bank guidelines?

  1. Abhedya and Navodaya should have paid up a minimum capital of 100 Cr.

  2. Abhedya and Navodaya should offer both deposit and loan products.

  3. Navodaya cannot set up subsidiaries to set up NBFC business.

  4. Navodaya can offer only a limited range of products.

  5. Abhedya and Navodaya should have at least 10 years of experience in banking and finance.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Abhedya can offer deposits and loan products as it is a small bank, but Navodaya cannot offer loan products.

Multiple choice

Where the liability in relation to sum adjudged has not arisen out of a commercial transaction, the maximum yearly rate of interest awardable under Section 34(1) of the CPC from the date of decree for payment of money to date of payment, is

  1. 12%

  2. 18%

  3. 10%

  4. 6%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Option (1) is incorrect: No such provision Option (2) is incorrect: No such provision Option (3) is incorrect: No such provision Option (4) is correct: Under Section 34 of the CPC, where the liability in relation to the sum so adjudged had arisen out of a commercial transaction, the rate of such further interest may exceed six percent per annum.